Nobody downloaded yet

Economic Analysis of TV Row between BSkyB and Virgin Media, Providing TV Services in Non-Traditional Ways - Assignment Example

Comments (0) Cite this document
Summary
From the paper "Economic Analysis of TV Row between BSkyB and Virgin Media, Providing TV Services in Non-Traditional Ways" it is clear that with the provision of Television programmes through broadband services, the cost to the customers would be considerably reduced…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
Economic Analysis of TV Row between BSkyB and Virgin Media, Providing TV Services in Non-Traditional Ways
Read TextPreview

Extract of sample "Economic Analysis of TV Row between BSkyB and Virgin Media, Providing TV Services in Non-Traditional Ways"

Download file to see previous pages It is an issue relating to the ‘Dominant Strategy’ being played by Sky for the repositioning of its Basic channels. Virgin Media, the Cable Company in which Sir Richard Branson's empire is a major shareholder accused Sky of using its dominant position in Pay-TV to stifle competition. According to Sky, the row between the companies started because of the Virgin's refusal to pay the asking price. Virgin says that Sky is trying to dominate the market by asking 'more than double' charges for its channels with a view to 'coerce' virgin customers to switch to new providers by denying access to basic channels. Sky maintains that the price it wants is 'reasonable' taking into account the benefits it provides to the Virgin customers. It also says that it has adopted a 'product differentiation' along with the 'price increase' by offering a new 'high definition' service, where the quality of the broadcasting will be better. "It denies allegations by Virgin that it is demanding "more than double" the amount currently paid." (BBC News 2007) According to Richard and Mark (2007) "Sky added that its offer of 3p per Virgin Media customer per day is still on the table should the cable group wish to return. Sky added that it is still willing to supply its channels directly to cable households." The strategy behind the move of Sky is to reposition its channel Sky one by revamping it to include live football and UK TV premieres of big US films giving Sky One a content which is being currently offered under Sky's premium sports and movie channels. Couple with this Sky is providing programmes in High Definition (HD), which it claims as a key selling point. With this differentiation and improvements in the products, Sky demanded higher charges from Virgin.
Virgin Media implies that Sky is using its dominance in the market to its advantage. Steve Burch, the Chief Executive of Virgin says "we will not allow Virgin Media or our customers to be the victim of Sky's market power." Virgin says that it cannot afford to pay the charges being demanded by Sky since as per the costing calculations virgin would end up in paying Sky 1.23 per month per subscriber that is more than one-third of the 90p cost outlined by Sky. Moreover, Sky is also demanding a 'minimum guaranteed payment' that is twice the current annual payment being made by Virgin to Sky. "Virgin has closed the gap with Sky to some extent by signing deals with major content owners to offer programmes on demand - though these do not include US drama 24 and mainly cover older series" (Chris Tryhorn 2007)
To combat the pressure from Sky Virgin had already signed deals with some content owners to provide programs on demand. Virgin Media would continue to charge the customers at the same level without any reduction for the loss of Sky channels. Virgin says it would compensate the viewers with 2700 hours of on-demand viewing.
Effect on the Customers of Virgin:
With the Sky basic channels going off the cable, the viewers would end up paying more for lesser channels, although Virgin says it will compensate the customers with more hours on-demand viewing. Around 3.3 million subscribers of Virgin would lose channels like Sky One, Sky Travel, Sky News and Sky Sports News. They will not get the value for the money they pay to Virgin. This would result in the subscribers switching over to other providers where they may get full value for their money. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Economic Analysis of TV Row between BSkyB and Virgin Media, Providing Assignment, n.d.)
Economic Analysis of TV Row between BSkyB and Virgin Media, Providing Assignment. Retrieved from https://studentshare.org/media/1517643-television-case-study
(Economic Analysis of TV Row Between BSkyB and Virgin Media, Providing Assignment)
Economic Analysis of TV Row Between BSkyB and Virgin Media, Providing Assignment. https://studentshare.org/media/1517643-television-case-study.
“Economic Analysis of TV Row Between BSkyB and Virgin Media, Providing Assignment”, n.d. https://studentshare.org/media/1517643-television-case-study.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economic Analysis of TV Row between BSkyB and Virgin Media, Providing TV Services in Non-Traditional Ways

(TV)Media Influence on Youth

... programs consumes much time for academic work and physical exercises A. Result to poor academic performance. B. Contribute to development of obesity and unhealthy weight gain due to lack of physical exercises. IV. We need to promote watching beneficial programs and encourage parental participation in children activities. A. Censored programs are important source of knowledge and entertainment for preteens. B. Parental involvement in child upbringing protects preteen from being negatively influenced by Television. Media plays an important role by shaping our social, religious, economic and political aspects. In this era of rapid technological advancement, information is flowing at unprecedented rate and though there are many forms... )...
4 Pages(1000 words)Essay

Benefits of TV media

...?Benefits of TV media Television is one of the most integral components of the modern age. People seek education, entertainment, news and views on TV. With the passage of time, more and more channels have bombarded the TV media thus providing the viewers with a plethora of content. TV benefits people of all ages in a number of ways: It is because of the TV that we have started to know and learn about other nations of the world that we never get to meet otherwise. Likewise, we get to see so many places that we would never be able to reach physically. Learning about different cultures is very important in the present age because today we live in a multicultural society. We have to frequently interact with people from different parts... of the...
3 Pages(750 words)Essay

The Dispute between BSkyB and Virgin Media

...for its entertainment channels; instead the channels are mostly preferred for detailed coverage of business, politics, social and sport items. Virgin Media can forward a strategy through which the popularity of BSkyB can diminish, which can be achieved by promoting the services and channels of the rival companies. Following the development of IPTV (delivery of TV program over Broadband internet) and the increasing importance of TV services delivered in 'non-traditional' ways (by cable or over the internet) BSkyB appears to be losing its monopoly...
7 Pages(1750 words)Case Study

Print and TV Media

... words and concepts of a bygone era, with everyone now embracing the benefits of new technology. TV and print have both enjoyed major successes-with print a bit earlier than TV-but the goal now is to find ways to keep the 'tradition' fresh and relevant, with the market not anymore what it used to be. VII. Conclusion Print and TV media have very significant differences, and attract opposite sensibilities and preferences, but they both aim to provide information and entertainment to the rest of the world. What is key now s for them to keep their goals and disciplines, and work towards fighting the war that may ultimately render them nonexistent in but a few years.... long after the paid duration-specially for magazines and...
3 Pages(750 words)Essay

TV Violence

...The media is a leading agency for projecting the ideologies and news to a huge target population or viewers. The larger the audience base, the more powerful it becomes. Hence, media in its various formats like television, radio, newspaper and magazine exerts significant impact on the society. The topic is interesting and relevant because the researches have also shown that the aggression in real life increases with the increase of violence shown in TV, cable etc. Children have become especially vulnerable target with shows like HitTVNext hit that reflects in their increased aggressive behavior. Interestingly, while the parents are unable to have parental control over their children’s...
2 Pages(500 words)Essay

Mass Media- TV Show

...Mass Media - TV Show Television programming these days is proliferated by various incarnations of the Crime Drama genre. Everything from the police procedural shows such as Law and Order all the way to the crime comedies such as ABC televisions Castle grace our television screens once a week in order to entertain us and quite possibly, share a bit of legal education with the viewers whenever possible. For this particular paper, I shall focus my attention on discussing the television show Castle which airs on Monday nights at 9 PM on ABC. I shall try to answer the question “What makes Castle special to its viewers?” Castle falls under the genre of a crime comedy. The show follows the...
2 Pages(500 words)Essay

UK TV drama analysis

...and lead that which they feel to be the best; a life without struggle, pain or hardships. It is for this reason that the aim of this paper shall be to study the TV drama Misfits, and take a look at the way in which the characters react to life and the way in which they may be related pot real life experiences. Furthermore, the paper shall focus on the first two episodes of the series for a more in depth and precise look into everything. The plot of the story follows the lives of 5 teens that are caught for taking part in offences that have warranted them community service to the cut. These are Kelly Bailey, Curtis Donovan, Alisha Daniels, Simon Bellamy and Nathan Young....
7 Pages(1750 words)Essay

TV media and violence

...TV MEDIA AND VIOLENCE TV Media and Violence Quite often, raging debates emerge over the influences of media on the society especially to the younger people. Focusing on the various analysis that have been made it is clear that media has both negative and positive effects. Different parties have different views on which between the positive and the negative effects have more weight. However whether lying more on the positive or negative side, they all seems to receive wide support accompanied by irrefutable evidence hence leading to the conclusion that media plays a huge role in shaping...
5 Pages(1250 words)Term Paper

TV

... Disney Character Attributes, Lion King Lion King refers to an animated musical film produced by Walt Disney in 1994 (Allers Film). The setting of the story is in the kingdom of lions in Africa. The Disney film personifies Simba’s character leading to an extra ordinary animated film. The story revolves around the main character, Simba who is an heir to the King of Pride Lands, Mufasa. Simba symbolizes a young lion and hence the title, Lion King. The young lion seeks to succeed the king. However, Simba’s uncle, Scar aims to prevent the young lion from succeeding the king by claiming that Simba murdered Mufasa (Allers Film). Notably, Simba goes to exile as Scar succeeds the king. Nevertheless, after maturing, the young lion returns... Disney...
1 Pages(250 words)Essay

Media production Film and Tv

...effectiveness, and new value. Specifically, the new notion refers to the reducing of boundaries between traditional media, boundaries between countries, communities, and industries, and boundaries between information providers and receivers. The new pattern refers to the pattern transformation from the point-points pattern of points-points pattern, which enables every individual to have the opportunity to get involved in information broadcasting, and can further enhance public participation (Bagdikian, 2014, 12). For instance, the Bombings in London happened in 2005 was pictured by William, a citizen of London, and the news and...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Economic Analysis of TV Row between BSkyB and Virgin Media, Providing TV Services in Non-Traditional Ways for FREE!

Contact Us